# Data Centers and Water Use Explained

> How AI data centers impact local water resources without federal data.
- Title: Data Centers and Water Use Explained · USAFacts | Shortify
- Summary: How AI data centers impact local water resources without federal data. AI data centers use significant water but federal data is lacking; local context…
- Keywords: data centers, water use, ai infrastructure, federal data, local water resources, open-loop cooling, closed-loop cooling, water treatment, news, politics, money, Data
- Source: USAFacts — https://usafacts.org/articles/analyst-notes/answering-your-questions-about-data-centers-and-water
- Read time: 2 min
- Topics: data centers, water use, ai infrastructure, federal data, local water resources, open-loop cooling, closed-loop cooling, water treatment, news, politics, money
## Why little data on data centers and water?
Federal data on data center water use is scarce and not centralized, with local projects offering limited insights.
## Why do people care about data centers and water?
Water scarcity affects communities, and data centers demand water, raising concerns about local availability.
## How data centers use water?
Data centers may use water for cooling equipment via open-loop or closed-loop systems, with varying water needs.
## Open-loop vs. closed-loop cooling
Open-loop systems require continuous water supply due to evaporation, while closed-loop systems reuse water with minimal additional intake.
## Water use in 2023
Data centers used 17 billion gallons of water in 2023, equivalent to 389,700 people's annual water use.
## AI data centers and water demand
AI data centers are large and use liquid-cooled systems, increasing water demand but exact usage remains unclear.
## Botetourt County data center
A data center in Botetourt County reserves 2 million gallons per day of water, with actual use likely lower.
## Water source matters
Data centers often rely on public water systems, which can affect local water availability and quality.
## Wastewater disposal concerns
Data centers generate wastewater that may require treatment or pose risks to local water quality.
## Key questions for local impact
Local water availability, data center size, cooling technology, and water source determine community impact.
## Water is local
Water regulation occurs at the state level, not federal, making local context critical for data center impacts.
## AI spending and data centers
AI spending accounted for 30% and 11% of GDP growth in Q2 and Q3 of 2025, with $7.5 billion invested in data centers in August 2026.
## What happens next?
Local water utilities and communities must assess data center impacts on water resources and infrastructure.
## Key takeaway

AI data centers use significant water but federal data is lacking; local context matters most.